How to avoid high U.S., Calif. taxes: Leave

The charlatans who run the U.S. and California governments assume that things are so wonderful here that nobody would dare to leave, even to avoid high taxes.

But people are leaving in droves — not just California for other states with more freedom, but America for other countries with more freedom. The latest:

“Eduardo Saverin, the billionaire co-founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.”

California and U.S. tax grabbers have been salivating at the though of looting the Facebook millionaires for hundreds of millions of dollars in taxes. They’ll still get most of that. But not all of it.

It reminds me of how smart, talented people used to free the old Soviet Union, communist Eastern Europe and Maoist China for freedom in America. I’ve known a number of them over the years. One Hungarian I know says the United States rapidly is becoming like the communist Hungary he esaped 30 years ago: a highly centralized socialist state with little or no freedom.

When people used to leave the communist countries, commonly the communist regime would rob them one more time before they left. The report on Saverin says:

“Saverin won’t escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on thecapital gains from their stock holdings, even if they don’t sell the shares, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan’s law school. For tax purposes, the IRS treats the stock as if it has been sold.”

And Saverin, sensibly, isn’t going to invest his money in socialist America and Kalifornia, but in freer, more capitalist foreign countries:

“He plans to invest in Brazilian and in other global companies that have strong interests in entering the Asian markets.”

24 comments

JS – billionaires and millionaires don’t need to flee. Heck, the off-shore bank UBS alone held 55,000 secret American accounts unbeknowst to the American government. Instead of doing the right thing and pulling their charter to do business domestically the US government gave them a little handslap and they continue to harbor secret off-shore american accounts. There was a big stink on 60 Minutes about this very thing.

And if ONE bank had 55,000 secret American accounts – how many secret American accounts are offshored in other foreign banks, JS?

You see, I wouldn’t really care but since the rich white-shoe boys aren’t paying what they owe the ordinary US citizen gets soaked to compensate for what the white-shoe boys don’t pay. So it is a matter of fairness and fiscal equity.

Your article should really be directed to the working middle class who are really getting screwed by the US tax system. They are the ones who should flee the country.

Before your readers flee make sure they do their homework. Many run of Belize, Honduras, Mexico, Panama, etc….but if you an American living in those countries you have a target on your backs – especially if the world economy goes to hell and falls through the floor. And in those countries there is no such thing as a 2nd Amendment. So please look before you leap!!

Mr. B wrote, “You see, I wouldn’t really care but since the rich white-shoe boys aren’t paying what they owe the ordinary US citizen gets soaked to compensate for what the white-shoe boys don’t pay. So it is a matter of fairness and fiscal equity.”

The rich never pay. They find a way out, as you indicated, or leave.

The only “fairness” is to end all taxation. Make all government voluntary.

“The only “fairness” is to end all taxation. Make all government voluntary”

I kind of expect more from you, JS. The world you envision here is not within the realm of reality. Everything can’t be administered through the private sector. No nation or civilization on earth – past or current – has operated on such a basis. And I agree with most of your stuff. And I also am highly critical of our government which I believe is the root of many if not most of our problems. But until we focus on what is realistic we will never make any progress whatsoever. The good witch of the west will not appear before us, wave her wand and create a ‘land of oz’.

My point is that billionaires and multi-millioniares should not be allowed to hide their big trusts and massive asset allocations in offshore banks shielded from taxes. Hell, these people have had the BEST OF LIFE in America. Most haven’t served a day in the military. It’s been all wine and roses. Why shouldn’t they pay??? Why should the middle class slob have to make up for it all??? And the billionaire and multi-millionaires who do follow the rules get screwed too since they have to pay more. It throws the entire system out of balance.

Sure you can. Pull the banking charter for any foreign bank that participates in such activity effectively forbiding them to do business within the domestic US. This is economic terrorism. And if you catch somebody doing it – not just a slap on the hand. 5 years hard-time in a US prison. That’ll stop ‘em.

“Who to you think runs things?”

This is the problem, JS. The criminals have bought off the politicians who do nothing to stop it. It’s a huge financial whorehouse for the uber-rich. In fact, I would be willing to bet that 50% of Congressmen and women have secret off-shore accounts too. Many are millionaires many, many times over. So when I read blogs at CWD claiming that prohibiting corporations from giving unlimited amounts of money to politicians is a violation of the 1st Amendment right – it just makes my blood boil. The 1st Amendment was never intended to perpetuate widespread bribery and fraud.

“I mean get rid of the income tax — period”

That’s fine. But before we try that we must forbid deficit spending. We must cut the government budget to the bone and determine how much money we need to keep the system running. At that point we can determine how much and where the taxes must come from. If they cut out all the waste, fraud and corruption we could cut back on the income tax too, although I don’t think we could eliminate it. A big chunk of gov revenue comes from the income tax. And if you don’t have it – that would mean we would have to increase the tax elsewhere. But first – CUT SPENDING OFF AT IT’S KNEES! That is the first step in the process. And the bastards aren’t willing to do it.

“No you can’t. The rich have always called the shots, all through out history, except where you had a totalitarian take over like Mao or Stalin but then they became the new rich”

It’s nonsensical to say it can’t be stopped. I just explained how it can be stopped. Just saying the rich are able to commit whatever criminal acts that they want upon the general population with impunity because they are rich is a defeatist attitude. What’s worse? A totalitarian society or one in which the laws of the land are ignored for multi-millionaires and billionaires???
I contend that they are the flip sides of a coin and both are EQUALLY bad.

“That’s the way it’s been in all of human history and that’s the way it will always be”

You deserve what you accept and tolerate in this world. If you carry such an attitude – that being crapped on by the elite is our fate – then you deserve even more of it than the next guy. I promote righting wrongs and eliminating injustice. Not encouraging it.

You could very easily stop the rich for m ripping everyone off, like with what happened with TARP-you simply stop them from fraud, throw them in jail and then there is a lot less fraud. Works pretty good.

And you stop bailing out millionaire and billionaire Wall Street employees and firms.

“They don’t want a repeat of what happened in czarist Russia. And they know communist Russia was less productive than the sham called democracy. So they will allow a limited degree of freedom”

Yes, I agree. They are master manipulators and know pretty much where the tipping point is. But the problem they face is that the resources are running out. The collective wealth pie is becoming smaller because the dollar doesn’t buy what it used to and economics dictates that we can produce what we used to produce as a nation thereby resulting in a smaller GDP that must be divided amongst a growing population. But the elite do not want to give up any share of their wealth. In fact, they want theirs to grow larger while the peasants fight amongst themselves for the crumbs. That’s work work. Another big problem they face is that we have something called a ‘2nd Amendment’ to the US Constitution in America. And you can’t turn back the hands of time on that one. What’s done is done. Most other nations would not allow such a right because they know what the outcome could be. Put those 2 problems together and the elite are not really sitting pretty. There are many more of us than there are of them. People often make real stupid decisions out of greed. Sometimes they let thing proceeds past the tipping point out of greed. Naturally that would be a huge mistake.

“California’s budget deficit has grown to a projected $16 billion and the state will have to make severe cuts to schools and public safety if voters reject tax hikes in November, Gov. Jerry Brown announced Saturday”

Yep. You read that right. The State deficit has mushroomed to $16B and is going higher. Now if we all don’t vote for higher taxes there will be tanks in the streets and martial law declared. heh. I told you the propoganda machine would heat up, didn’t I??? Watch them shove it into high gear now. Unless the tax measure passes we are all doomed. heh. These aholes could ruin up a wet dream. heh.

Yup. Brownie knew all along this would happen and he would be able to kick in the pass my tax increases or else rhetoric and scare the jeebus outta the sheeple.

I think Brownies tax increases may pass but Molly Mongrel’s won’t. I think the corporate tax measure will pass. Thing is these increases will in no way work to solve the budget problem.

Then what?

If the DemoNcrats get a two-thirds majority in the legislature then they will pass all sorts of tax and fee increases. Otherwise I think they will try to pick off (bribe) enough RepubloCons to raise taxes. I think they will be successful to a degree.

I don’t know about that Bob. The last I saw the polls show Clown’s proposed tax is dead even. Not long ago Clown was winning by at least 10 percentage points. Not anymore. So he is LOSING ground, not gaining it! I think the Californians are fed up with higher taxes when we get screwed at every turn. People have had it. Even with all the forthcoming propoganda (ie. “Do it for the children” – “Do it for public safety” – “Do it for the college kids”, etc… will fall on deaf ears. PEOPLE ARE TIRED OF THIS CRAP!!! THEY HEAR IT EVERY DAMNED TIME A NEW TAX PROPOSAL IS THROWN OUR WAY!!!

“If the DemoNcrats get a two-thirds majority in the legislature then they will pass all sorts of tax and fee increases”

If they lose at the polls and then force a legislative strongarmed tax on us it could result in some pretty horrendous civil unrest. I hope not. But it is a very strong possibility judging from history.

It is good news that Brownie has lost ground. I don’t think Mongrell’s tax increase will pass at all. I read an interview of her and she is living in a fantasy land.

I’ll tell ya Mr. Bub, the local politicians where I live are just like Brownie trying to scare the jeebus outta the sheeple. And the cops and the firefighters are even worse and their union heads even worse yet. They decided to close a fire station right before an election.

The local politicians, bureaucrats, cops and firefighters got fat and sassy off of RDA funds and grants from the federales. Then all that got yanked and now they are squeling like stuck pigs.

And guess what? The want to raise our phone tax, have a new and permanent special 1% city sales tax, put a new tax on alcohol sales, outlaw plastic bags and make retailers charge a 25 cent tax on paper bags. They recently raised the sewer tax.

And they are telling us if you get robbed and want a cop to show up or you want the fire dept to put out the fire when your house catches fire you better vote for tax increases and that goes if you want the pot holes fixed. Meanwhile we have a city clerk who makes $133k a year plus bennies.

“And guess what? The want to raise our phone tax, have a new and permanent special 1% city sales tax, put a new tax on alcohol sales, outlaw plastic bags and make retailers charge a 25 cent tax on paper bags. They recently raised the sewer tax”

Bob, if I were you I’d organize as many like-minded people as possible and storm the next Council meeting with a “Just say ‘NO'” on higher taxes message. Tell the Council members that if they want to voluntarily submit tax payments over and above what they owe that you approve it. But tell them to keep their dirty mitts off you stack – otherwise you will organize a recall effort.

I heard that some cities are charging residents an additional huge fee if you call 911 for police or fire. So if you see somebody getting beaten in front of your home and call 911 they’ll send you a $300 bill in the mail. How will that work out??? heh. These pols must truly be mental midgets.

I know of cities who charge non-residents $500 if they get into a fender bender while driving through the city and the police or the fire department must respond. That’s good for commerce, isn’t it??? I avoid those cities like there was an outbreak of leperacy there.

You know why all this is happening, right Bob??? THEY ARE STARTING TO FIGURE OUT THAT THE PUBLIC PENSION MATH DOESN’T WORK!!! SO THEY ARE COMING TO RID YOUR WALLET OF MORE DISCRETIONARY CASH!!!

Hey, did you folks read that certain city councils are outlawing the sales of dogs and cats in cities in LA and Orange county? heh. The Council dictators claim that they are targeting the ‘puppy mills’. Well, if they are mad at ‘puppy mills’ then why don’t they get out their little hatchets and go after the abusive ‘puppy mills’? Why are they targeting INNOCENT pet store owners when there is NO EVIDENCE whatsoever they they acquire their animals via abusive puppy sources? This is the definition of ‘fascism’. Politicians who can ruin a man financially overnight by declaring his traditionally legitimate business as ‘illegal’. Now these pet stores must pull up their roots and move to other locations – which is terribly expensive and forces them to bring in a new base of customer. And until they do so they lose money. We are turning into a totalitarian society. This is ‘fascism’. The free enterprise system is crumbling at the hands of these litle dictators. FIGHT BACK!!!!

Well look on the bright side, Mr. Bub. We may all wind up paying higher taxes but tomorrow it will be announced that the gummit of Israel will get an additional $680 million dollars in “aid.” Ain’t life grand? Just another day in the Empire.

Bob, I read somewhere that Israel gets more foreign aid from the USA than all other nations combined. Apparently it’s multi-billions annually. And there is strong evidence that we have supplied them with nukes. But nobody wants to talk about such things. Pakistan, India, Israel – can all own nukes provided from USA technology. But if Iran wants one to protect themselves from the other – dammit – we’ll turn their country into a sandbox!!! I just love the fairness and equity in international politics!!! heh.

Yes. I believe the official amount is around four or five billion a year but there is much “indirect aid” to Israel buried in the budgets of various federal departments that does not count in that amount.

All the foreign policy of the USSA and its “foreign aid” does is buy us little people more enemies. And it just gives our rulers more excuses to lord over us little people. Below is just one example of what we get.

Bob, the whole idea behind the TSA gropes and patdowns was to demoralize and desensitize the AVERAGE LAW-ABIDING AMERICAN CITZEN to ripen them up for things to come. heh. What do you think Crimestein would do if a TSA screener groped her fat ass? Minimally, the screener would get fired. Possibly prosecuted for taking indecent liberties with an overlord oligarch. She reminds me so of an old, wrinkled Isbella of Castille.